BONUS VOUCHER SCHEME EXPORT

It’s really great but who wants that?

BONUS VOUCHER SCHEME, EXPORT The Export Bonus Voucher Scheme was one of the major economic policy innovations of the Ayub Khan period (1958-1969) It was introduced in January 1959 at the suggestion of two German experts who had been invited by the government to help the country increase the value of its exports The experts devised a simple mechanism for allowing importers and consumers of imports to subsidize exporters and producers of exports In its original form, the Bonus Voucher Scheme granted “vouchers” to exporters, equivalent to some prespecified proportion of the value of exports Originally, only two different percentages were prescribed: 20 percent for commodities in “their natural state” (other than raw jute, raw cotton, leather, and hides), and 40 percent for all manufactured itemsThe Bonus Voucher Scheme effectively introduced a system of multiple exchange rates, with values changing according to the premium quoted on the market for the vouchers The scheme remained in effect for 13 years; it was abandoned in the spring of 1972 when the rupee was devalued with respect to the US dollar, from Rs 476 to Rs 11, and the exchange rate was unified